Joe Biden took a significant step towards major political success on Thursday, June 24. After long negotiations, the President of the United States has indeed indicated that he has reached an agreement with a group of moderate senators, Democrats and Republicans, on one of his major investment projects.
The form meets the background. Joe Biden continues to plead in favor of bipartisan majorities, while polarization, on the contrary, paralyzes the federal capital. The announcement of the deal had an immediate effect on the markets. Shares of companies that would benefit from the spending, such as construction equipment maker Caterpillar, rose immediately.
“We didn’t get everything we wanted. But we found a good compromise ”, said Senator Rob Portman (Ohio), one of the elected Conservatives in the White House. “This is what reaching a compromise means”, estimated the president, coming out of the Oval office to announce this “Deal” in the company of its visitors. “It reflects something important, it reflects a consensus. The heart of democracy demands it [pour fonctionner] “, he added.
This compromise concerns the classic infrastructures on which a real federal windfall will fall, mainly for the benefit of road equipment, high-speed Internet, and better networks for water and electricity, rail and transport. public. The agreement reached on Thursday represents a total of 580 billion dollars (485 billion euros) more than what must already be invested in the years to come, for a total of 1,209 billion dollars in eight years, d ‘after figures provided by the White House. An unprecedented figure for public transport equipment, according to the American press.
The delicate question of financing
This amount is, however, significantly lower than the $ 2,250 billion initially announced, because the White House has revised down some of its objectives and because it does not include investments in “Human infrastructure”, which Republicans are fiercely opposed to, such as better support for the disabled and the elderly.
The Republicans of the moderate group have accepted larger investments than those initially envisaged, but without compromising on their funding. It is on this point that the Democrats have made concessions, by giving up guaranteeing these expenses by an increase in the corporate tax. It has been replaced by a motley cocktail. The necessary revenues will come from unused funds, better tax collection, and additional tax revenues induced by the growth resulting from this modernization, according to the text of the compromise.
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